This　paper　proposes　a　hybrid　manufacturing/remanufacturing　model　with　the　financial　hedging　in　the　case　where　the　randomness　in　demand　is　correlated　with　the　financial　markets.　The　provided　models　are　mainly　for　those　risk-averse　remanufacturers　who　faced　with　random　demand　and　yield.　The　aim　of　this　paper　is　to　maximise　remanufacturer　utility　by　purchasing　financial　instruments　and　producing　new　and　remanufactured　products.　A　hybrid　manufacturing/remanufacturing　system　production　planning　model　is　first　built　under　mean-variance　framework,　and　then　the　financial　hedging　is　integrated　into　the　hybrid　production　system.　There　are　three　main　findings.　First,　the　variance　of　profit　with　financial　hedging　is　always　less　than　the　variance　of　the　model　without　financial　hedging.　Second,　the　remanufacturer　with　high　(low)　risk　aversion　is　more　likely　to　produce　new　(remanufactured)　products.　Third,　the　model　without　(with)　financial　hedging　tends　to　produce　new　(remanufactured)　products　unless　remanufacturing　cost　is　low　(high)　enough.　All　those　findings　proved　that　financial　hedging　can　reduce　the　operational　uncertainty　effectively　and　increase　the　proportion　of　remanufacturing,　which　will　make　remanufacturing　firms　more　economical　and　environmentally　friendly.　Therefore,　remanufacturing　firms　can　consider　using　financial　hedging　to　reduce　operational　uncertainty.　©　2017　Informa　UK　Limited,　trading　as　Taylor　&　Francis　Group.